Cameco (NYSE:CCJ) and Alpha Metallurgical Resources (NYSE:AMR) Financial Review

Alpha Metallurgical Resources (NYSE:AMR) and Cameco (NYSE:CCJ) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Valuation & Earnings

This table compares Alpha Metallurgical Resources and Cameco”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alpha Metallurgical Resources	$2.13 billion	0.95	-$61.69 million	($3.00)	-53.24
Cameco	$3.54 billion	11.86	$421.96 million	$1.08	89.22

Cameco has higher revenue and earnings than Alpha Metallurgical Resources. Alpha Metallurgical Resources is trading at a lower price-to-earnings ratio than Cameco, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

84.3% of Alpha Metallurgical Resources shares are held by institutional investors. Comparatively, 70.2% of Cameco shares are held by institutional investors. 18.2% of Alpha Metallurgical Resources shares are held by insiders. Comparatively, 1.0% of Cameco shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Alpha Metallurgical Resources and Cameco, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alpha Metallurgical Resources	2	4	0	0	1.67
Cameco	0	5	11	0	2.69

Alpha Metallurgical Resources currently has a consensus target price of $195.33, indicating a potential upside of 22.29%. Cameco has a consensus target price of $148.92, indicating a potential upside of 54.55%. Given Cameco’s stronger consensus rating and higher possible upside, analysts clearly believe Cameco is more favorable than Alpha Metallurgical Resources.

Profitability

This table compares Alpha Metallurgical Resources and Cameco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alpha Metallurgical Resources	-1.83%	-2.47%	-1.67%
Cameco	18.38%	11.05%	7.65%

Risk & Volatility

Alpha Metallurgical Resources has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, Cameco has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.

Summary

Cameco beats Alpha Metallurgical Resources on 12 of the 14 factors compared between the two stocks.

About Alpha Metallurgical Resources

Alpha Metallurgical Resources, Inc., a mining company, produces, processes, and sells met and thermal coal in Virginia and West Virginia. The company offers metallurgical coal products. It operates twenty-two active mines and nine coal preparation and load-out facilities. The company was formerly known as Contura Energy, Inc. and changed its name to Alpha Metallurgical Resources, Inc. in February 2021. Alpha Metallurgical Resources, Inc. was incorporated in 2016 and is headquartered in Bristol, Tennessee.

About Cameco

Cameco Corporation provides uranium for the generation of electricity. It operates through Uranium, Fuel Services, Westinghouse segments. The Uranium segment is involved in the exploration for, mining, and milling, purchase, and sale of uranium concentrate. The Fuel Services segment engages in the refining, conversion, and fabrication of uranium concentrate, as well as the purchase and sale of conversion services. This segment also produces CANDU reactor fuel bundles and other reactor components. The company offers nuclear fuel processing services. The Westinghouse segment engages in the manufacture of nuclear reactor technology original equipment. This segment provides products and services to commercial utilities and government agencies; and outage and maintenance services, engineering support, instrumentation and controls equipment, plant modification, and components and parts to nuclear reactors. It sells its uranium and fuel services to nuclear utilities in the Americas, Europe, and Asia. Cameco Corporation was incorporated in 1987 and is headquartered in Saskatoon, Canada.